Amazon facing FTC complaints about kids making in-app purchases

The FTC is reportedly wrestling with Amazon about their implementation of in-app purchases on Kindle devices. The FTC claims that Amazon hasn't been providing sufficient warning about IAPs, particularly when it comes to kids making the purchases. Meanwhile, Amazon is defending itself by saying they promptly offer refunds when complaints about undue purchases are made, and have improved the way they warn users about in-app purchases.

If things don't go Amazon's way, they could face a lawsuit that produces fines, requirements for additional record-keeping, and additional disclosures for the next 20 years. The FTC wants Amazon to require a password for every in-app purchase and simplify the refunding process. The FTC has apparently received thousands of complaints from parents about their kids misspending through Amazon in-app purchases. Apple found themselves in a similar situation within recent memory, and ended up having to pay up $32 million.

How do you guys feel about how Amazon handles IAPs? Do they provide enough warnings? Are they secure enough that you could hand off a Kindle device to a kid without worrying they'll rack up in-game gems on your bill?